Daicel Chiral Technologies India ... vs Dcit, Circle -8 (1), Hyderabad on 3 February, 2023
CIT Vs Raja Rajeeshwari
Narikelly Estate( 1993) 199ITR 383,387,( Ker) Following state of
Kerela V Bhavani Tee Produce Co Limited followed in Bisonfied A
Estate Vs IAC( 1998) 233ITR 656,659( Ker) which kerela decision
has been affirmed in Bison Field A Estate Vs IAC( 2001) 248 ITR
341,342(SC)
A Basis concept in Income tax law is that the assessee must have
received or have acquired a right to receive the income before it
can be taxed. There must be a debt owed to him by somebody, if
the amount is to be taxed on mercantile ( accrual) basis.
Taxability is attracted not only when income is actually received
but also when it accrues, income accrues when it falls due that is
to say when it became legally recoverable, irrespective of whether
it is actually received or not and accrued is that income which that
the assessee has a legal right to receive H P Mineral, Ind
Development Corporation V CIT( 2008) 302 ITR 120(HP).